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HOW THIS IS MONEY CAN HELP

A key selling point of both HL equity funds is relatively low fees for an actively managed fund, and the platform boasts that this latest offering will charge 0.6 per cent a year - making it cheaper than 91.4 per cent of its peers in the Equity Income sector, and 90 per cent cheaper than all other active funds.

However, the Hargreaves Lansdown 0.45 per cent Vantage Platform fee will be slapped on top of that, taking the total cost to 1.05 per cent.

The actively managed fund will remain more expensive than an index tracker fund targeting income shares, such as Vanguard's UK equity index fund, which has ongoing charges of 0.22 per cent.

Tough times: Income investors have struggled as interest rates have slumped to low levels

He says: 'With interest on cash bumping along the bottom and inflation climbing, there is an increased focus on generating sustainable income from the equity markets.

'But income investing isn't just about the next dividend. It's about creating the combination of rising income, backed by capital gains that maximises wealth over the long-term. A very high yield today can mean a lower total return in the long run, because the company isn't reinvesting enough in future growth.

'We want to provide investors with an attractive level of income today, but that's not at the expense of long-term dividend growth. Companies that grow their dividends usually see their shares appreciate over the long-term too - in this way a rising income can also translate into long-term capital growth.'

The fund is looking to invest in companies that have a strong track record of paying a dividend supported by free cash flow, with enough left over to invest back into the business.

It is also keen to find companies that have their debts under control and offer high returns on capital - particularly those that have a source of recurring revenue.

What is in the UK fund already launched?

The HL Select UK Shares fund has revealed two more holdings, which previously were in the fund's 'other' category as the positions were two small.

One such holding is 2.4 per cent in global e-commerce company GB Group, which is listed on the AIM market and provides software and database services that allow companies to verify the identity of their customers.

The UK Shares fund is backing e-commerce

'E-commerce keeps gaining share, compared to traditional retail and that augurs well for demand for GB’s services,' manager Steve Clayton says - adding that he is taking 'a very positive view of the continuing digital shift in the economy,' played out through other holdings including Just Eat and Rightmove.

The other newly-revealed holding is 2.15 per cent in Sanne Group, a fund administration company.

The UK Shares fund currently has its biggest weighting to the media sector, with 19.2 per cent.

This is closely followed by 18.3 per cent in travel and leisure, and 16.4 per cent in support services.

Top 10 holdings include FTSE 100 stalwarts British American Tobacco and Unilever, iconic British fashion brand Burberry and beverage giant Diageo.

Clayton says: 'In a world starved of yield, these asset classes are in demand and Sanne has been growing like topsy...longer term, the industry is consolidating and Sanne is determined to be part of the process, which could see some interesting possibilities emerge in the years ahead.'